Tag: Baird Equity Research

Consumers are not completely comfortable with mobile payments yet

Consumers may be somewhat uneasy about making a mobile purchase, according to a recent survey from Baird Equity Research. Though mobile commerce has been gaining more attention, consumers still prefer to use more conventional forms of commerce when making purchases, especially in physical stores. Consumers may still be wary of the security issues that exist in the mobile commerce space, though many people have been growing more comfortable with the concept of making purchases with a mobile device.

Young consumers seem to be the most comfortable with the idea of mobile commerce and shopping online with smartphones

According to the survey from Baird Equity Research, four in 10 consumers in the United States have participated in mobile commerce. Approximately 10% of consumers said that they make an in-store purchase with their smartphones at least once a month. Three in 10 consumers said that they make a mobile payment online once a month or less. Those between the ages of 18 and 24 are the most likely to participate in mobile commerce as they are the demographic most comfortable with mobile technology.

Many people are concerned about security and lack of retail support

The majority of consumers are not convinced that mobile payments are better than more conventional forms of commerce. Using a credit or debit card or paying with cash is often considered simpler. Cash is also considered a safer way to pay for products by consumers that are not interested in mobile commerce. Some consumers do not participate in mobile commerce because retailers do not support in-store mobile payments, while others are concerned about their financial information being stolen and exploited by malicious groups.

Mobile payments will continue to grow in the future

Mobile payments are expected to gain more momentum in the coming years. New services are being released regularly and these platforms are becoming more secure. Retailers are also showing more support for the mobile space, where they see a great many opportunities to engage consumers that are eager to shop for and purchase products with their mobile devices.

Apple Pay is gaining momentum among iOS users

Baird Equity Research has released the results of a new survey concerning iPhone users and Apple Pay. Apple’s mobile payments service was released in October of last year and has managed to find significant momentum despite the short period of time it has been available for. The service can be used on both the iPhone 6 and iPhone 6 Plus, but it is not available for other iOS devices at this time. Apple Pay is expected to be compatible with a smartwatch that Apple is planning to release at some point in the future.

PayPal leads in mobile payments, but Apple Pay accounts for 6% of all in-store mobile transactions

According to the survey, 40% of online consumers made an in-store purchase with a mobile device. PayPal was the most preferred application among this consumers, with Google Wallet accounting for 11% of these transactions. Apple Pay only accounts for 6% of in-store mobile payments, but a significant portion of iOS users currently use the platform regularly. Approximately 40% of iPhone 6 users make use of Apple Pay to purchase products in physical stores as well as online.

Apple Pay is beginning to become more popular among retailers

Though PayPal remains the leading entity in mobile payments, Apple Pay is expected to catch up quickly. The service has the support of several major retailers, many of whom want to engage mobile consumers more effectively. These retailers partnered with Apple for the launch of the mobile payments service and have begun to find significant success in the mobile space as a result. As more retailers show support for Apple Pay, the service may begin to play a larger role in the overall mobile payments space.

Young consumers are more likely to participate in mobile payments

Notably, young consumers, between the ages of 18 and 24, are the most likely to make in-store mobile payments. Such transactions had the highest frequency among this demographic, according to the survey from Baird Equity Research. The survey notes that these consumers tend to make a mobile transaction in a physical store as many as four times per month.